Booher Book Stores has a beta of 0.7. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 8%. The m

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answerhappygod
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Booher Book Stores has a beta of 0.7. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 8%. The m

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Booher Book Stores has a beta of 0.7. The yield on a 3-month
T-bill is 4% and the yield on a 10-year T-bond is 8%. The market
risk premium is 5.5%, and the return on an average stock in the
market last year was 13%. What is the estimated cost of common
equity using the CAPM? Round your answer to two decimal places.
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